Summary
Saudi Arabia's sovereign wealth fund, along with Jared Kushner’s firm and a private equity company, have agreed to buy Electronic Arts (EA) for $55 billion, marking the largest leveraged buyout ever. This deal will make EA a private company, as it will no longer be publicly traded on the stock market and is set to be finalized by the spring or summer of 2026.
Key Facts
- Saudi Arabia’s investment fund and Jared Kushner's firm are part of a group buying EA.
- The purchase price is $210 per share, which is 25% over the previous stock price.
- EA's stock increased by 20% after rumors of the deal.
- EA will become a private company and stop being listed on the NASDAQ.
- The buyout includes $36 billion in equity funds and $20 billion in debt financing from JPMorgan Chase.
- EA’s board approved the sale, and it needs further approval from regulators.
- Electronic Arts is known for game franchises like Battlefield and Madden NFL.
- The gaming community has expressed concern over the acquisition's impact on the industry.
